What Is a Bill of Materials (BOM)? Guide for Small Business
A bill of materials, or BOM, is the list of components, quantities, and instructions needed to build, assemble, repair, or package a finished item.
What a bill of materials includes
A BOM usually includes the finished item, component names, SKUs, quantities, units of measure, optional substitutes, notes, and sometimes labor or assembly steps.
Why BOMs matter
A BOM prevents teams from guessing what parts are needed. It improves purchasing, reduces missing components, and helps estimate whether enough stock exists to build or repair something.
Simple BOM example
A field repair kit might include one case, two connectors, one cable, one label, and one printed instruction card. Each component should have its own inventory record and reorder point.
How inventory software supports BOM workflows
Inventory software helps by tracking component availability, receiving parts, counting stock, and alerting when a component falls below reorder point.